The Bank of Japan held its short-term policy rate unchanged at 0.75% at its January 2026 meeting. The decision was reached by an 8-1 majority of the Policy Board, with board member Hajime Takata dissenting in favour of an immediate increase to 1.00%, according to the bank's announcement published on 23 January 2026.
The December 2025 hike had lifted the policy rate to its highest level in approximately 30 years.
The bank reported that it had raised its economic growth forecasts.
The bank attributed the upgrade to its real GDP growth forecasts for fiscal 2025 and 2026 mainly to the effects of the government's economic measures, while trimming its fiscal 2027 forecast.
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